Sennett v. Commissioner
United States Tax Court
Petitioner-husband, in 1968, was unable to take his distributive share of ordinary losses sustained by a partnership in 1967 and 1968 under sec. 704(d), I.R.C. 1954, 1All section references are the the Internal Revenue Code of 1954 as amended. because the adjusted basis of his partnership interest had previously been reduced to zero as a result of prior losses.
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Petitioner-husband, in 1968, was unable to take his distributive share of ordinary losses sustained by a partnership in 1967 and 1968 under sec. 704(d), I.R.C. 1954, 1All section references are the the Internal Revenue Code of 1954 as amended. because the adjusted basis of his partnership interest had previously been reduced to zero as a result of prior losses. He sold his partnership interest to the partnership in December of 1968 and agreed to pay to the partnership an amount equal to his share of the partnership losses in excess of his basis. He paid a portion of this amount to the…
1Opinion of the Court
OPINION
Goffe, Judge:
The Commissioner determined a deficiency in petitioners’ Federal income tax for the taxable year 1969 in the amount of $65,351 together with an addition to tax for the same year under section 6653(a) in the amount of $3,268. Respondent has conceded the addition to tax and one of the adjustments contained in the statutory notice of deficiency.
The issue for decision is whether section 704(d) allows a former partner to deduct, in 1969, his payment to the partnership of a portion of his distributive share of partnership losses which was not previously deductible while he was a…
2Cases cited1 opinion
- Sennett v. CommissionerUnited States Tax Court · 1978
3Cited by10 opinions
- William Sennett and Sandra Sennett v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1985
- Chong v. Comm'rUnited States Tax Court · 2007
- Curran v. CommissionerUnited States Tax Court · 1984
- Leblanc v. United StatesUnited States Court of Federal Claims · 2009
- Charles L. Frost v. CommissionerUnited States Tax Court · 2020
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